Paytm's bank to open doors today

BENGALURU: Paytm Payments Bank will become operational starting Tuesday, and will expand to 31branches and 3,000 customer service points in the first year, the company said.

The bank will also offer a cashback of Rs 250 to customers depositing Rs 25,000 in the payment bank.

Paytm Payments Bank will get Rs 400 crore in investment in the first two years of operation. One97 Communications founder Vijay Shekhar Sharma personally owns a 51% stake in the payment bank, as per regulatory requirements, with the remaining stake owned by One97 Communications.

Sharma and One97 have together already invested about Rs 220 crore in the payments bank.

One97 Communications, the parent company of digital pay rent company of digital payments player Paytm, will transfer the wallet business to Paytm Payments Bank on Tuesday, the company had informed its customers, allowing them the option to discontinue by sending a relevant communication to the company before the launch date.

Paytm Payments Bank, which will be headed by Renu Satti as CEO, will have a zero balance requirement and will offer online transactions such as IMPS, NEFT, and RTGS free of charge. The bank will offer an interest of 4% per annum for savings accounts. The company said that the first one million customers to open a payments bank account and reach a deposit of Rs 25,000 will get a cashback of Rs 250 instantly.

Payments banks can accept Rs 1 lakh per account. The bank will also roll out its banking app in the beta phase, initially for its employees, the company said. The payments bank will also offer RuPay debit cards to consumers, which can be used for five free ATM cash withdrawals in non-metro cities per month after which they will be charged Rs 20 per withdrawal.

"RBI has given us an opportunity to create a new kind of banking model in the world. We are proud that our customer deposits will be safely invested in government bonds, and be used for nation building. None of our deposits will be converted into risky asset," said Sharma in a statement.

Sponsored Stories

Subscribe to our Newsletters

In an interview with ETCIO, Kedar Upadhye, Jt President & Global CFO, Cipla, throws light on some innovative IT projects that Cipla has implemented,as part of its digital transformation strategy, to fuel business growth.

Sudhanshu Pokhriyal, President of Textiles at Raymond, firmly believes that digital transformation is a top-down approach. Taking the lead on the initiative, he has devised an innovative digital strategy that enhances customer experience while helping retailers in their business.